If the Quantity Supplied and the Price Change by the Same

question 40

Multiple Choice

If the quantity supplied and the price change by the same percentage, then supply is

• A) elastic.
• B) perfectly inelastic.
• C) unit elastic.
• D) perfectly elastic.
• E) inelastic.

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Definitions:

Contribution Margin

The excess of sales over variable costs.

Bottleneck Hour

Bottleneck Hour refers to the specific time period during which the flow of operations or processes is significantly slowed down due to limitations in capacity.

Bottleneck

A stage in a process that reduces the efficiency of the overall system due to limited capacity or resource.

Demand

An economic principle referring to a consumer's desire and willingness to pay a price for a specific good or service.